Adani Wilmar shares rebound 41% in seven sessions; how long can the rally last?

Shares of Adani Wilmar Ltd have risen for the seventh straight session today, clocking  41% returns for their investors during the period. Adani Wilmar shares which closed at Rs 344.2 on February 27 hit an intraday high of Rs 484.20 today, translating into 40.67% returns on BSE. In the current trading session, the Adani Wilmar stock rose 5% to Rs  484.20 against the previous close of Rs 461.15 on BSE. It opened 3.65% higher at Rs 478 and was stuck in the upper circuit of 5% in early trade. Market cap of Adani Wilmar rose to Rs 62,930 crore. 

In terms of technicals, the relative strength index (RSI) of Adani Wilmar stands at 56.8, signaling the stock is trading neither in the oversold territory nor in overbought territory. The consumer goods stock has a one-year beta of 1.1, indicating average volatility during the period. Adani Wilmar stock is trading higher than the 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages.  

 The stock has climbed 42.14% in a year and fallen 21.6% since the beginning of this year.  

 Here’s a look at what experts said on the outlook of the stock.  

Ravi Singh, Vice President and Head of Research, Share India said, "After continuous sell off, Adani Wilmar has now bounced back strongly and aims to touch the level of Rs 480 in near terms, from current levels. All the momentum indicators like RSI, MACD, Oscillators and MAS are supporting the bull run on a daily basis." 

 Abhijeet from Tips2trade said, “"A strong turnaround in Adani group stocks has led to a sharp bounce back in Adani Wilmar as well over the past few sessions. But Adani Wilmar now faces strong resistance at  Rs 455. A daily close above this level could lead to targets of  Rs 487-539 in the coming days. Support will now be at  Rs 404." 

The stock hit its 52 week low of Rs 327 on February 28 this year and a 52 week high of Rs 878.35 on April 28, 2022.  The stock has snapped a series of losses this month after a report by Hindenburg Research alleged accounting frauds, stock manipulations and money laundering by the Adani Group on January 24.  

In an exclusive interview to Business Today, the Adani Group has accused Hindenburg Research of not doing proper research, and “copy-pasting” from the company disclosures. It also said that they either did not do proper research or did proper research but misled the public. Adani Group Chief Financial Officer Jugeshinder Singh told Managing Editor, Business Today Television, Siddharth Zarabi. Hindenburg needs to be questioned why they misrepresented in the questions they asked Adani Group in their report, Singh said. 

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